UK - Suffolk County Council's pension fund deficit has risen by £32m since March 2001, an interim valuation reveals.
The £700m scheme now has a deficit of £165m, which has pushed the funding level down from 84% to 81% on a buyout basis.
The council’s corporate finance manager Peter Edwards said: “The pension fund is now making significant contributions to remove the deficit.”
He pointed out that interest on the deficit was now more than offset by the additional contributions being made by employers. Scheme actuary Hymans Robertson had predicted an investment return of 6% for 2001-02, but the actual return was -0.2%.
Other adverse factors included “higher than expected” rate of salary increases.
Edwards said: “The current situation, which is driven mainly by the poor market returns over the past two years, is affecting all local authority funds.
“We are continuing to monitor the position of the pension fund closely and to keep employers in the fund informed.”
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